Paytm unveils Paytm Payments Bank; Targets 500 Mn customers by 2020

Paytm today unveiled the Paytm Payments Bank, India’s first truly mobile-first bank with zero charges on all online transactions and no minimum balance requirement.

In the first year, Paytm Payments Bank will rollout 31 branches and 3,000 customer service points to help achieve financial inclusion in the country. The rollout plan is in line with Paytm’s mission of bringing half a billion Indians in to the mainstream economy. The company aims to get consumers to shift from cash to the digital payment ecosystem.

Paytm Payments Bank accounts will initially be available on an invite-only basis. In the first phase, the company will roll out its beta banking app for its employees and associates.

The company is setting up KYC centers across India to complete KYC for customers and make them eligible for a Payments Bank account. The account will have zero balance requirement and every online transaction (such as IMPS, NEFT, RTGS) will be free of charge. The company will also offer current accounts to its millions of merchants.

Speaking at the launch, Vijay Shekhar Sharma, Chairman, Paytm Payments Bank said, “RBI has given us an opportunity to create a new kind of banking model in the world. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. None of our deposits will be converted in to risky assets.”

Renu Satti, CEO, Paytm Payments Bank said, “We are very excited to launch Paytm Payments Bank and bring financial services to unbanked segment of Indians. Our ambition is to become India’s most trusted and consumer-friendly bank. Leveraging the power of technology, we aim to become the preferred bank for 500 million Indians by 2020.”

Paytm Payments Bank is India’s only mobile-first bank with zero balance - zero digital transaction charge accounts. The banking entity of One97 Communications, Paytm Payments Bank was launched on May 23, 2017 with Renu Satti as its CEO and is headquartered in the National Capital Region, India.